Strong air cargo demand is boosting Nippon Express, which is set to post a 20 per cent rise in pre-tax profit to more than 16 billion yen ($142 million) in the April to June quarter, according to reports in Japan.
The Nikkie Asian Review reports sales at the freight forwarder climbed five per cent to 470 billion yen in the period and the airfreight division was the main factor behind an increase in both revenue and profit. The segment reportedly contributes about 10-20 per cent of its sales.
Air cargo shipments are said to have risen by 30 per cent on a weight basis with US and Europe auto part payloads rising and this has been led by Subaru and Toyota.
The Review also says airfreight of electronic parts to Southeast Asia were solid as internet connectivity rises, household electronics need more electronic components and demand for the latest smartphones rise.
Nippon Express forecasted in May that pre-tax profit will increase 10 per cent to 70 billion yen for the financial year ending in March, 2018. It will report its results for the April to June quarter today.